COMPAÑÍA DE MINAS BUENAVENTURA S.A.A. 4Q23
Earnings Results Conference Call
Cautionary Statement
This presentation contains certain information that may constitute forward-looking information under applicable U.S. securities legislation, including but not limited to information about costs applicable to sales, general and administrative expenses; production volumes; current expectations on the timing, extent and success of exploration; development and metallurgical sampling activities, the timing and success of mining operations and the optimization of mine plans. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained within said information. These uncertainties and risks include, but are not limited to, the strength of the global economy, the price of commodities; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present, and other risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the BVN's form 20-F filed with the Securities and Exchange Commission in the U.S. and available at www.sec.gov . Readers are urged to read these materials. Buenaventura assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.
Agenda
1
2
3
4
5
FY23 Highlights
Resources and Reserves
2024 Guidance
San Gabriel Progress
Closing remarks
3
FY23 Highlights
EBITDA Direct Operations(1)
In US$ millions
+38% | 238.3 | |
173.1 | ||
FY22 | FY23 |
Leverage ratio 2.05x
Lowest in 2 years
FY23 net income was US$ 33M negatively impacted by US$ 113.2M non-cash provision related to former SUNAT dispute
US$ 127.3 M FY23 CAPEX investment in San Gabriel confirms construction ramp-up and to produce first gold bar by 2H25
Cerro Verde distributed dividends of
US$ 49M during 4Q23.
(FY23: US$ 147M)
Yumpag´s pilot stope produced
2.3 MOz-Ag during 4Q23. Definitive operating permits expected by Mar-24
El Brocal achieved 10.8 ktpd during
4Q23 surpassing 10.0 ktpd target
Successful 2023 explorations replenished Cu, Ag and Au resources & reserves with remarkable results in Yumpag
+100 Moz-Ag
Consolidated Production(2)
57.7 kton
Cu (kton) | 13.6 |
53 58
9.2 MOz
Ag (MOz) | 4.3 |
8.3 9.5
155.3 kOz
Au (kOz) | 44 |
126 142
2023 Guidance Min range Max range
Notes: (1) Do not include Yanacocha transaction US$ 300M; | 4 |
(2) Consolidated figures includes 100% BVN, 100% La Zanja and 100% El Brocal. |
All-in Sustaining Cost(1)
Costs Applicable to Sales
Copper AISC (US$/TMF-Cu Eq)
6,427
↓8% 5,884
Copper
US$/TMF-Cu
6,631 | 6,787 | 6,687 | 6,571 | 6,738 |
6,227 6,031
5,047
↓10%
6,613
5,964
El Brocal:
10.8ktpd ramp-up in underground mine
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | FY22 | FY23 |
FY22FY23
Gold AISC (US$/Oz-Au Eq)
Silver
US$/Oz-Ag
↓3%
25.5 | 24.4 | |||
22.0 | ||||
21.5 | 19.6 | 19.0 | ||
18.0 | 17.7 | |||
15.2 | 14.7 |
Uchuchacua & Yumpag: 2.6MOz-Ag additional production during 4Q23
1,327
↓27%
973
FY22FY23
Gold
US$/Oz-Au
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | FY22 | FY23 |
1,241 | 1,252 | 1,153 1,160 | |||||||
1,126 | 1,126 | 1,143 | 1,124 | 1,139 | 1,145 | ||||
Tambomayo:
Lower grades
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | FY22 | FY23 |
Note: (1) Consolidated figures considers 100% BVN, 100% La Zanja and 100% El Brocal | 5 |
Both AISC consider the same costs but shown on a copper basis and on a gold basis. | |
Free cash flow generation
FY23 Cash generation | FY23 EBITDA to FCF reconciliation | |
In US$ millions | In US$ millions |
(1)
Notes: (1) Considers US$ 33 M of advanced payments related to San Gabriel project
Focus on four flagship assets, building our pipeline of diverse projects and
increased LOM position us as a mining leader...
Ag
Yumpag
Cu
El Brocal
Au
San Gabriel
Yumpag completed construction
El Brocal underground mine expansion
- 12ktpd by 2025
San Gabriel ramp-up and
first gold bar by 2H25
Cu
Cerro Verde dividends distribution
Cerro Verde
$120M - $150M
Flagship mines: ↑10 years of uninterrupted reserves and resources extraction
Copper
El Brocal
35%
1.9 Mton
Trapiche
65%
Reserves
Resources
El Brocal
SilverGold
Others | Others |
8% | |
4% | |
San
128 MOz2.8 MOz Gabriel69%
Uchucchacua | ||
El Brocal | & Yumpag | El Brocal |
33% | 59% | 27% |
Others | ||
8% | Others | San |
10% | Gabriel |
33%
3.1 Mton
Trapiche
67%
199 MOz | Uchucchacua | 3.5 MOz | 48% |
& Yumpag
El Brocal | 65% |
27% | |
El Brocal | |
42% |
Note: (1) Reserves and Resources based on consolidated figures considers 100% BVN, 100% La Zanja and 100% El Brocal
(2) Prices used for Buenaventura´s Reserve calculation: Copper 8,800 $/MT, Silver 23 $/Oz, Gold 1,750 $/Oz, Zinc 2,600 $/MT, Lead 2,100 $/MT
2024 Guidance: stable copper production at El Brocal, Yumpag boosting silver and lower gold production driven by lower grades
Copper | Silver | Gold | |||||
Kton-Cu | MOz-Ag | 15.2 | kOz-Au | ||||
+3% 60 | 155 -12% | ||||||
58 | |||||||
+65% | 137 | ||||||
13.5 | |||||||
55 | 9.2 | 123 | |||||
FY23 | FY24E | FY23 | FY24E | FY23 | FY24E |
CAPEX
$320M
San Gabriel- ~$220M
$300M
Growth ~$20M
Maintenance
~$70M
Yumpag ~$15M
San Gabriel: Our next large gold project
Item | Description | Cumulative progress: | |||
1Q23 | 2Q23 | 3Q23 | 4Q23 | ||
1 | Engineering | 66% | 81% | 90% | 92% |
2 | Procurement | 85% | 85% | 89% | 89% |
3 | Construction | 3% | 7% | 14% | 27% |
4 | Commissioning | 0% | 0% | 0% | 0% |
Total | 15% | 23% | 28% | 38% | |
Highlights
Project Milestones
Authority admitted | Start of UG | Concrete Plant |
power line EIA | mining contractor | installation completed |
2Q23 3Q23 4Q23 1Q24E
Fresh water | Processing Plant | San Gabriel |
Dam Started | platform completed | campsite completed |
- FY23 CAPEX related to earth movement, excavation underground contractor field work and San Gabriel campsite reached US$ 94 M.
- Additional US$ 33 M have been invested in the project as advance payments for equipment manufacturing.
- Processing plant platform completed. Concrete, Structures, Mechanics and Piping contractor will start during 1Q24.
Reserves
1.9 MOz-Au
+14 years LOM
Resources
1.7 MOz-Au
+14 years LOM
10
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Disclaimer
Compañia de Minas Buenaventura SAA published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 11:00:01 UTC.
